Calcutta, Nov. 26: Yamaha Motor India plans to expand its manufacturing capacity by at least 40 per cent in order to match the rising demand for its vehicles in the Indian market.

Sources said the company has set a target to sell 5.5 lakh bikes by 2004-05. The company expects to sell 3 lakh units during the current financial year itself.

“We are very optimistic of posting strong sales in the next couple of years in view of a reasonable surge in demand in the two-wheeler sector. And it is necessary for us to go in for a capacity expansion to match the demand pattern,” they said.

The major growth driver will be newly launched 125cc cruiser motorcycle ‘Enticer’ and the new 106cc ‘Libero’. The company also plans to launch at least two to three new models in the next two years.

Yamaha has set an export target of 30,000 units for the current year.

“Our vehicles have received a very good response in several south-Asian markets. We think we should be able to cross exports of one lakh units within a very short time,” they said.

Yamaha, a wholly-owned subsidiary of Japanese two-wheeler maker Yamaha Motor Company, currently makes about 18 models in its stable, including the ‘Crux,’ ‘Crux-R,’ ‘RX135’ and ‘YBX125’.

The company aims to sell at least one lakh units of the Libero in a year. It also plans to jack up production of the Enticer from 6,000 units per month to 10,000 units per month. The model witnessed heavy demand over the last few months due to which the company has been forced to stop bookings till December, sources said.

The company recently invested Rs 350 crore in order to gear up its manufacturing facility to meet the growing demand.